US Department of Transportation Federal Aviation Administration CERTIFYING AGENCY COMPLIANCE REVIEW REPORT

JURISDICTION AND AUTHORITIES

The Federal Aviation Administration (FAA) Office of Civil Rights is authorized by the Secretary of the US Department of Transportation

(DOT) to conduct civil rights compliance reviews Reviews are undertaken to ensure compliance of applicants recipients and sub-recipients

with 49 CFR Part 26 Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs and

49 CFR Part 23 Participation by Disadvantaged Business Enterprises in Airport Concessions referenced in this report as Part 26 and Part 23

respectively Also specific sections of the programs are referenced using the nomenclature (23xx) and (26xx) in this document

Part 26 requirements apply to recipients of DOT funds under certain programs including airport funds under 49 USC 47101 et seq The

program is narrowly tailored under the law It is designed to allow firms that meet certain eligibility standards to compete fairly to remove

barriers to DBE firms seeking to participate in DOT-funded programs to assist in developing firms that can compete in the marketplace

outside of the DBE program and to provide flexibility to recipients of federa l funds in creating opportunities for DBE firms

Part 23 requirements apply to airports that had received a grant for airport development at any time after January 1988 that was authorized

under Title 49 of the United States Code The requirements under this part apply to those airports classified as primary airports by the

National Plan of Integrated Airport Systems (NPIAS) Part 23 is mandated by 49 USC 47107(e) and addresses the airport concessions

disadvantaged business enterprises (ACDBEs) at airports receiving funds under the Airport Improvement Program (AIP) The requirements of

this part became effective April 21 2005 and have revised several times

OBJECTIVES

The purposes of Part 26 and Part 23 as stated in the regulations are

bull To ensure nondiscrimination in the award and admin istration of airport concessions and DOT-assisted contracts in the Departments highway transit and airport financial assistance programs

bull To create a level playing field on wh ich DBEs can compete fairly for DOT-assisted contracts bull To ensure that the Departments DBE program is narrowly tailored in accordance with applicable law bull To ensure that only firms that fully meet this parts eligibility standards are permitted to participate as DBEs bull To help remove barriers to the participation of DBEs in airport concessions and DOT-assisted contracts bull To assist the development of firms that can compete successfully in the marketplace outside the DBE program bull To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportun it ies for DBEs

1

REVIEW PROCESS

The review process began with a request for PennDOT to randomly select SO certification files The selections focused on the following types of processed and pending certification files

bull 10 DBE Cert ification Files

bull 10 ACDBE Certification Files

bull 10 Interstate Certification Files

bull Denials

bull 5 De-certifications

Interviews were also held with certifying staff and actual procedures are compared to t hose documented by the certify entity

Review Conducted By FAA Staff Keturah Pristell and Nancy Cibic Site Visit Date May 21 2014

Certifying Agency Staff Interviewed Trista Maurer amp Jeannie Daniels

DESCRIPTION OF THE CERTIFYING AGENCY amp REVIEW

Subpart E - Certification Procedures of 49 CFR Part 2681 requires DOT recipients to participate in a state Unified Certification Program (UCP)

that sha ll provide one-stop shopping to applicants for DBE certification PennDOT (Pennsylvania Department of Transportation) is a certifying

partner with the PAUCP organization that is made up of 5 certifying partners including the Allegheny County Department of M inority Women

and Disadvantaged Business Enterprise the Port Authority of Allegheny County the City of Philadelphia the Southeastern Pennsylvania

Transportation Authority (SEPTA) amp PennDOT certifying small business firms in the state of PA The PAUCP website can be found at the

following website wwwpaucpcom As a certifying agency we found that the PennDOT certification staff is very dedicated to mainta ining the

integrity of the certification process and despite challenges with small staff processes and maintains a very large number of applications The

files reviewed were very thorough for example each file contained an in depth narrative summarizing events chronologically from application

submission to decision letter From reviewing the files and interviewing the staff it is very apparent that PennDOT has a nicely structured

process for processing applications and certifications that is consistently followed The Office of Chief Council (OCC) maintains all the

UCPCertification files DBE and ACDBE Certification is a collaborative effort between The Bureau of Aviation (BOA) and the Bureau of Equal

Opportunity (BEO) and OCC offices of PennDOT Last but not least staff members from all three of those offices was extremely

accommodating and helpful during the entire review process

2

REVIEW PROCESS

The review process began with a request for PennDOT to randomly select SO certification files The selections focused on the following types of processed and pending certification files

bull 10 DBE Cert ification Files

bull 10 ACDBE Certification Files

bull 10 Interstate Certification Files

bull Denials

bull 5 De-certifications

Interviews were also held with certifying staff and actual procedures are compared to t hose documented by the certify entity

Review Conducted By FAA Staff Keturah Pristell and Nancy Cibic Site Visit Date May 21 2014

Certifying Agency Staff Interviewed Trista Maurer amp Jeannie Daniels

DESCRIPTION OF THE CERTIFYING AGENCY amp REVIEW

Subpart E - Certification Procedures of 49 CFR Part 2681 requires DOT recipients to participate in a state Unified Certification Program (UCP)

that sha ll provide one-stop shopping to applicants for DBE certification PennDOT (Pennsylvania Department of Transportation) is a certifying

partner with the PAUCP organization that is made up of 5 certifying partners including the Allegheny County Department of M inority Women

and Disadvantaged Business Enterprise the Port Authority of Allegheny County the City of Philadelphia the Southeastern Pennsylvania

Transportation Authority (SEPTA) amp PennDOT certifying small business firms in the state of PA The PAUCP website can be found at the

following website wwwpaucpcom As a certifying agency we found that the PennDOT certification staff is very dedicated to mainta ining the

integrity of the certification process and despite challenges with small staff processes and maintains a very large number of applications The

files reviewed were very thorough for example each file contained an in depth narrative summarizing events chronologically from application

submission to decision letter From reviewing the files and interviewing the staff it is very apparent that PennDOT has a nicely structured

process for processing applications and certifications that is consistently followed The Office of Chief Council (OCC) maintains all the

UCPCertification files DBE and ACDBE Certification is a collaborative effort between The Bureau of Aviation (BOA) and the Bureau of Equal

Opportunity (BEO) and OCC offices of PennDOT Last but not least staff members from all three of those offices was extremely

accommodating and helpful during the entire review process

2

Findings Codes ND= No Deficiency Identified D = Deficient NA= Not applicable I = Incomplete NR = Not Reviewed

FINDINGS PART I - PROCESS REVIEW

- CORRECTIVE REQUIREMENT REGULATION REFERENCE FINDINGS I CORRECTIVE ACTION ACTIONDUE

DATE 1 Uniform 2683(c)(7) ND NA Application (7)Require potentia l DBEs to complete and submit an appropriate

application form unless the potentia l DBE is an SBA certified firm The standard application is being applying pursuant to the DOTSBA MOU utilized and contains two basic (i) You must use the application form provided in Appendix F to this part addendums within the parameters of without change or revision However you may provide in your DBE the regulatory requirements The program with the approval of the concerned operating administration addendums were a) a county map of for supplementing the form by requesting additional information not the state indicating where a firm is inconsistent with this part willing or likely to work within the

state and b) an optional form allowing a spouse to relinquish claim to joint bank account funds used for business purposes

2 Processing of 49 CFR 2683 (k) ND NA Applications (k) If you are a recipient you must make decisions on applications for

certification within 90 days of receiving from the applicant firm all information required under this part You may extend this time period once for no more than an additional 60 days upon written notice to the firm explaining fully and specifically the reasons for the extension You may establish a different time frame in your DBE program upon a showing that this time frame is not feasible and subject to the approval of the concerned operating administration Your fai lure to make a decision by the applicable deadline under this paragraph is deemed a constructive denial of the application on the basis of which the firm may appeal to DOT under sect2689

3 Annual 49 CFR 2683 D 08-24-2014 Updates (j) If you are a DBE you must provide to the recipient every year on the

anniversary of the date of your certification an affidavit sworn to by the PennDOTs yearly renewal affidavit firms owners before a person who is authorized by state law to requests too much information from all administer oaths or an unsworn declaration executed under penalty of firms PennDOT is requiring both the

3

REQUIREMENT

4 Certification Reviews

5 Confidentia lity

- ~

REGULATION REFERENCE

perjury of the laws of the United States This affidavit must affirm that there have been no changes in the firms circumstances affecting its ability to meet size disadvantaged status ownership or control requirements of this part or any material changes in the information provided in its application form except for changes about which you have notified the recipient under paragraph (i) of this section The affidavit sha ll specifically affirm that your firm continues to meet SBA business size criteria and the overall gross receipts cap of this part documenting this affirmation with support ing documentation of your firms size and gross receipts If you fail to provide this affidavit in a t imely manner you will be deemed to have failed to cooperate under sect26109(c)

49 CFR 2683 (h) Once you have cert ified a DBE it shall remain certified until and unless you have removed its certification in who le or in part through the procedures of section 2687 You may not require DBEs to reapply for certification or require recertification of currently certified firms However you may conduct a certification review of a certified DBE firm including a new on-site review three years from the date of the firms most recent certification or sooner if appropriate in light of changed circumstances 49 CFR 2683 (g) (g) You must safeguard from disclosure to unauthorized persons

FINDINGS I CORRECTIVE ACTION

persona l and business tax returns as well as PNW information during the annual review process While the regulations give the UCP flexibility to ask for addit ional information on a case-by-case basis asking for more than what is required from al l certified firms on an annual basis is not permitted and is considered a burden for the small DBE amp ACDBE firms Title 49 CFR 2683(hl does allow for more informat ion to be requested every three years as part of the certification review The form appears to be better suited for the certification review rather than the annual affidavit and gross receipts documentation

RECOMMENDED CORRECTIVE ACTION PennOOT certifiers must stop requesting more information than allowed from all DBE and ACDBE firms as soon as possible NO

CORRECTIVE ACTIONDUE

DATE

NA

NAND

4

REQUIREMENT

6 Site Visit

7 Denia ls

8 Certification Removal

9 Interstate Certificat ion

REGULATION REFERENCE

information gathered as part of the certificat ion process that may reasonably be regarded as proprietary or other confidential business information consistent with applicable Federal state and loca l law

49 CFR 2683 (c)( l ) NO (1) Perform an on-site visit to the offices of the firm You must interview the principa l officers of the firm and review their resumes andor work histories You must also perform an on-site visit to job sites if there are

such sites on wh ich the firm is working at the time of the eligibility investigation in your jurisdiction or loca l area You may rely upon the site visit report of any other recipient with respect to a firm applying for

certification 49 CFR 2686 ND (a) When you deny a request by a firm which is not currently certified with you to be certified as a DBE you must provide the firm a written explanation of the reasons for the denial specifically referencing the evidence in the record that supports each reason for the denial All documents and other information on wh ich the denial is based must be

made available to the applicant on request 49 CFR 2687 ND If a UCP (certifying agency) determines that there is reasonable cause to believe t hat a currently cert ified firm is ineligible certi fying agency review the record to determine whether there is reasonable cause to remove the firm s el igibility Agency must provide written notice to the firm it proposes ineligible setting forth the reasons for the proposed determination and follow specific process

49 CFR 2685 (a) Th is section applies with respect to any firm that is currently certified

in its home state (b) When a firm currently certified in its home state (State A) applies to

another State (State B) for DBE certification State B may at its discretion accept State As certification and certi fy the firm w ithout further procedures (1) To obta in cert ification in this manner the firm must provide to State B

NO

FINDINGS I CORRECTIVE ACTION CORRECTIVE ACTION I DUE

DATE

NA

NA

NA

NA

5

REQUIREMENT REGULATION REFERENCE FINDINGS I CORRECTIVE ACTION CORRECTIVE ACTIONDUE

DATE a copy of its certification notice from State A (2) Before certifying the firm State B must confirm that the firm has a current valid certification from State A State B can do so by reviewing State As electronic directory or obtaining written confirmation from State A (c) In any situation in which State B chooses not to accept State As certification of a firm as provided in paragraph (b) of this section as the applicant firm you must provide the information in paragraphs (c)(l) through (4) of this section to State B

6

REQUIREMENT

4 Certification Reviews

5 Confidentia lity

- ~

REGULATION REFERENCE

perjury of the laws of the United States This affidavit must affirm that there have been no changes in the firms circumstances affecting its ability to meet size disadvantaged status ownership or control requirements of this part or any material changes in the information provided in its application form except for changes about which you have notified the recipient under paragraph (i) of this section The affidavit sha ll specifically affirm that your firm continues to meet SBA business size criteria and the overall gross receipts cap of this part documenting this affirmation with support ing documentation of your firms size and gross receipts If you fail to provide this affidavit in a t imely manner you will be deemed to have failed to cooperate under sect26109(c)

49 CFR 2683 (h) Once you have cert ified a DBE it shall remain certified until and unless you have removed its certification in who le or in part through the procedures of section 2687 You may not require DBEs to reapply for certification or require recertification of currently certified firms However you may conduct a certification review of a certified DBE firm including a new on-site review three years from the date of the firms most recent certification or sooner if appropriate in light of changed circumstances 49 CFR 2683 (g) (g) You must safeguard from disclosure to unauthorized persons

FINDINGS I CORRECTIVE ACTION

persona l and business tax returns as well as PNW information during the annual review process While the regulations give the UCP flexibility to ask for addit ional information on a case-by-case basis asking for more than what is required from al l certified firms on an annual basis is not permitted and is considered a burden for the small DBE amp ACDBE firms Title 49 CFR 2683(hl does allow for more informat ion to be requested every three years as part of the certification review The form appears to be better suited for the certification review rather than the annual affidavit and gross receipts documentation

RECOMMENDED CORRECTIVE ACTION PennOOT certifiers must stop requesting more information than allowed from all DBE and ACDBE firms as soon as possible NO

CORRECTIVE ACTIONDUE

DATE

NA

NAND

4

REQUIREMENT

6 Site Visit

7 Denia ls

8 Certification Removal

9 Interstate Certificat ion

REGULATION REFERENCE

information gathered as part of the certificat ion process that may reasonably be regarded as proprietary or other confidential business information consistent with applicable Federal state and loca l law

49 CFR 2683 (c)( l ) NO (1) Perform an on-site visit to the offices of the firm You must interview the principa l officers of the firm and review their resumes andor work histories You must also perform an on-site visit to job sites if there are

such sites on wh ich the firm is working at the time of the eligibility investigation in your jurisdiction or loca l area You may rely upon the site visit report of any other recipient with respect to a firm applying for

certification 49 CFR 2686 ND (a) When you deny a request by a firm which is not currently certified with you to be certified as a DBE you must provide the firm a written explanation of the reasons for the denial specifically referencing the evidence in the record that supports each reason for the denial All documents and other information on wh ich the denial is based must be

made available to the applicant on request 49 CFR 2687 ND If a UCP (certifying agency) determines that there is reasonable cause to believe t hat a currently cert ified firm is ineligible certi fying agency review the record to determine whether there is reasonable cause to remove the firm s el igibility Agency must provide written notice to the firm it proposes ineligible setting forth the reasons for the proposed determination and follow specific process

49 CFR 2685 (a) Th is section applies with respect to any firm that is currently certified

in its home state (b) When a firm currently certified in its home state (State A) applies to

another State (State B) for DBE certification State B may at its discretion accept State As certification and certi fy the firm w ithout further procedures (1) To obta in cert ification in this manner the firm must provide to State B

NO

FINDINGS I CORRECTIVE ACTION CORRECTIVE ACTION I DUE

DATE

NA

NA

NA

NA

5

REQUIREMENT REGULATION REFERENCE FINDINGS I CORRECTIVE ACTION CORRECTIVE ACTIONDUE

DATE a copy of its certification notice from State A (2) Before certifying the firm State B must confirm that the firm has a current valid certification from State A State B can do so by reviewing State As electronic directory or obtaining written confirmation from State A (c) In any situation in which State B chooses not to accept State As certification of a firm as provided in paragraph (b) of this section as the applicant firm you must provide the information in paragraphs (c)(l) through (4) of this section to State B

6

REQUIREMENT

6 Site Visit

7 Denia ls

8 Certification Removal

9 Interstate Certificat ion

REGULATION REFERENCE

information gathered as part of the certificat ion process that may reasonably be regarded as proprietary or other confidential business information consistent with applicable Federal state and loca l law

49 CFR 2683 (c)( l ) NO (1) Perform an on-site visit to the offices of the firm You must interview the principa l officers of the firm and review their resumes andor work histories You must also perform an on-site visit to job sites if there are

such sites on wh ich the firm is working at the time of the eligibility investigation in your jurisdiction or loca l area You may rely upon the site visit report of any other recipient with respect to a firm applying for

certification 49 CFR 2686 ND (a) When you deny a request by a firm which is not currently certified with you to be certified as a DBE you must provide the firm a written explanation of the reasons for the denial specifically referencing the evidence in the record that supports each reason for the denial All documents and other information on wh ich the denial is based must be

made available to the applicant on request 49 CFR 2687 ND If a UCP (certifying agency) determines that there is reasonable cause to believe t hat a currently cert ified firm is ineligible certi fying agency review the record to determine whether there is reasonable cause to remove the firm s el igibility Agency must provide written notice to the firm it proposes ineligible setting forth the reasons for the proposed determination and follow specific process

49 CFR 2685 (a) Th is section applies with respect to any firm that is currently certified

in its home state (b) When a firm currently certified in its home state (State A) applies to

another State (State B) for DBE certification State B may at its discretion accept State As certification and certi fy the firm w ithout further procedures (1) To obta in cert ification in this manner the firm must provide to State B

NO

FINDINGS I CORRECTIVE ACTION CORRECTIVE ACTION I DUE

DATE

NA

NA

NA

NA

5

REQUIREMENT REGULATION REFERENCE FINDINGS I CORRECTIVE ACTION CORRECTIVE ACTIONDUE

DATE a copy of its certification notice from State A (2) Before certifying the firm State B must confirm that the firm has a current valid certification from State A State B can do so by reviewing State As electronic directory or obtaining written confirmation from State A (c) In any situation in which State B chooses not to accept State As certification of a firm as provided in paragraph (b) of this section as the applicant firm you must provide the information in paragraphs (c)(l) through (4) of this section to State B

6

REQUIREMENT REGULATION REFERENCE FINDINGS I CORRECTIVE ACTION CORRECTIVE ACTIONDUE

DATE a copy of its certification notice from State A (2) Before certifying the firm State B must confirm that the firm has a current valid certification from State A State B can do so by reviewing State As electronic directory or obtaining written confirmation from State A (c) In any situation in which State B chooses not to accept State As certification of a firm as provided in paragraph (b) of this section as the applicant firm you must provide the information in paragraphs (c)(l) through (4) of this section to State B

6